Comment: Firms falling behind on Consumer Duty
Following the FCA’s new review of the implementation of Consumer Duty, in which it has been reported that some firms are falling behind, Richard Farr, Non-Executive Director at Comentis said: “In its review, the FCA advises firms to ensure they’re prioritising effectively, focussing on the areas that will have the biggest impact on outcomes for their consumers. The problem with this guidance is that many of the firms we speak with at Comentis feel the step from what they do now to the desired outcome of the Consumer Duty is a relatively small one. They have always strived to deliver great outcomes, therefore they feel little has to change.
“But there are two areas of focus from the FCA in which they struggle. Namely, differentiating between customer groups and implementing data strategies that can adequately identify, monitor and stand behind the unique outcomes their customers experience.
“Technology-driven assessment tools, such as that offered by Comentis, can help to identify financially vulnerable customers and get the right systems in place, removing subjectivity from the process and ensuring consistency. These kinds of solutions are, arguably, the only way to ensure all vulnerability drivers are in scope. By combining clinical expertise with hard data, they’re able to reassure firms that their systems and controls will adequately meet the scrutiny of regulatory requirements.”